Further growth forecast in mobile payment tech market

12 Jan 2022

The worldwide mobile payment technologies market is forecast to grow at a compound annual growth rate (CAGR) of 37.8% between 2018 and 2026, as per new research published by Transparency Market Research entitled: “Mobile Payment Technologies Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026”. The Asia Pacific region is set to hold the majority revenue share, with the market growing at a CAGR of over 30%. The mobile payment market is predominantly fuelled by increasing adoption of smart appliances and increasing mobile data usage around the world. This is particularly the case in emerging economies. Indeed, in 2017, the global mobile payment technologies market was valued at $2,943.58 billion.

NFC payment devices

In addition, the adoption of NFC (near field communication) devices has risen in recent years to bolster financial transaction security during payment processes. Advanced technology in banks and financial institutions, increasing use of contactless payments and a rise in the use of e-platforms are some of the key factors boosting the adoption of NFC payment technology worldwide. According to the latest report by Allied Market Research, entitled “NFC Payment Devices Market by Device Type (Smart Watches, Fitness Trackers, Payment Wristbands, Smart Rings and Others) and Application (Grocery Stores, Bars & Restaurants, Drug Stores, Entertainment Centers and Others): Global Opportunity Analysis and Industry Forecast, 2021–2028,” the global NFC payment devices market size was valued at $16.35 billion in 2020, and is forecast to reach $67.71 billion by 2028, representing CAGR growth of 19.5% from 2020 to 2028. The report states: “The COVID-19 outbreak has significantly pushed the need of NFC payment devices, owing to increase in demand for contactless payments among the end users in order to avoid the spread of the virus transmission through cash. Also, several supermarket and shopping malls across the India and other developing countries have started using NFC-based mobile payment technology to promote digital payments during pandemic, which is considered opportunistic for the market.”

NFC market share by region

The NFC payment devices market share was led by North America in 2020, mainly due to a rise in government initiatives introduced across the U.S. and Canada to support digital payment systems, coupled with the availability of high-speed internet access. Nevertheless, substantial growth is predicted in the Asia-Pacific due to rising demand amongst retailers and consumers to reduce billing and transaction times throughout this region.